Thailand Car Output Cut to 1.45 Million Units on War, Tariff Impact
Thailand's automotive industry has cut its 2026 car production forecast to 1.45 million units, a 3.33% decline blamed on Middle East conflict and U.S. trade tariffs that have slashed regional exports by 38%. Motorcycle production targets we
The Federation of Thai Industries has reduced its 2026 automotive export forecast by 50,000 units to 900,000 vehicles—a 5.26% decline—bringing overall car production down 3.33% from the previously targeted 1.5 million units to 1.45 million. Surapong Paisitpattanapong, automotive group advisor and spokesman for the Federation, attributed the cut to the prolonged Middle East conflict and U.S. trade restrictions, which have caused Middle Eastern exports to fall 38.35% in the first half of the year. Regional competition from Chinese electric vehicles and tightening emission standards among trading partners have also weighed on prospects.
Despite headwinds in the auto sector, the Federation raised its 2026 motorcycle production target from 2 million to 2.05 million units—a 2.50% increase—with domestic sales forecasts climbing from 1.6 million to 1.65 million vehicles. The motorcycle market benefits from broader global demand and has been shielded from war-related disruptions. Supporting factors include Thailand's economic stimulus program "Thai Helping Thai Plus," rising fuel prices encouraging two-wheeler adoption, and new microfinance schemes expanding consumer credit access.
